As South Africa’s small to medium-sized enterprise (SME) ecosystem continues to grow, the need for more funding and financing solutions is also growing. Currently, SMEs are still mostly turning to traditional banks for funding; however, there are various alternative funding platforms that are gaining popularity with SMEs, one of which is Sourcefin.
What is Sourcefin?
Sourcefin is a South African fintech company that specialises in providing purchase order funding and invoice discounting to SMEs. The company has a full-service solution that includes helping businesses secure funding, source goods, manage logistics, and provide expert guidance to fulfil purchase orders.
At the 2025 SME South Africa Funding Summit, Sourcefin’s Chief Strategy Officer, Jedd Harris, said, “Alternative funding is still new but gaining popularity. The normal entrepreneur on the street looks for funding or a loan from traditional banks; you hardly hear them say, “I need merchant advance or invoice discounting, but those solutions are slowly gaining popularity.”
Access to Funding Still a Challenge
With an estimated 3,5 million SMEs in South Africa, the challenge of access to funding is still a barrier for many small businesses. Traditional banks often have long waiting periods, excessive paperwork and strict lending criteria, making it difficult for small businesses to access the capital they need.
The growth of tailored financing options means SMEs can now access financing solutions that can better meet the needs of their businesses. This financing is specifically designed to meet the unique challenges of SMEs and is more flexible and accessible than traditional financing options.
“Most SMEs don’t realise that there are fit-for-purpose funding solutions that suit their business and its needs. It’s not about taking loans anymore, it’s about what the specific need of the business is and which instrument fits better for your business,” Harris explained.
How Sourcefin is Bridging the Funding Gap
Harris elaborated that Sourcefin uses a collaborative approach with SMEs when it comes to their funding needs, including:
- Education: Sourcefin prioritises educating SMEs about alternative funding solutions, making it easier for them to access the right type of funding.
- Building trust and partnership: Sourcefin positions itself as a strategic partner to SMEs and works closely with them to understand their funding needs and help them find the most suitable funding solutions.
- Diverse funding solutions: Sourcefin offers SMEs a range of alternative funding options that are developed to suit their unique needs.
“At Sourcefin, we offer open-minded funding; we call it fit-for-purpose funding. While most traditional lenders are still looking at collateral but in most early-stage businesses, they don’t have it. At Sourcefin, we look at your future, the opportunity and back you according to your potential,” said Harris.
What Sourcefin Offers SMEs
Sourcefin has two funding solutions on offer for SMEs: purchase order funding and invoice discounting.
Purchase Order Funding
The purchase order funding option from Sourcefin has the following features for SMEs:
- Can help SMEs fulfil large purchase orders such as tenders.
- Specialist sourcing support to help SMEs meet client expectations on every purchase order.
- Provides strategic support to help the SME grow as it receives large purchase orders.
- Provides logistics support to help SMEs fulfil orders
- Project management support to help SMEs fulfil orders on time and to the correct requirements.
Apply for Sourcefin Purchase Order Funding
Applying to Sourcefin is easy and can be done online. You will need the following:
- First name
- Phone number
- E-mail address
- The total amount of funding you need
- What do you need the funding for
Once you have sent in your application, Sourcefin will get back to you within 48 hours.
Invoice Discounting
Invoice discounting is a type of funding that allows SMEs to gain instant access to capital that is tied up in invoices they have submitted. Invoice funding from Sourcefin can be approved in as fast as 24 hours from application.
Apply for Sourcefin Invoice Discounting
To apply for invoice discounting from Sourcefin, you need to do the following:
Step 1: Application
Answer a few simple questions that will help you determine if Sourcefin is the right platform for you. Following that, you will need to provide basic business and personal information. The final step is to provide details on the invoices you have outstanding.
Step 2: Approval
Once your application has been approved, a Sourcefin consultant will contact you to help you understand all the details of the financing deal and what costs come with it.
Step 3: Post-approval Support
Once your invoice finance is approved and you understand all details of the deal, Sourcefin will pay you a portion of the invoice value. The company will also keep track of the expected payments and follow up with your clients if necessary. Lastly, Sourcefin will let you know once the invoice has been paid, deduct its original advance plus any interest and pay the remaining balance into your account.
“We see the SME landscape as a positive sum-game, and we know that if we can’t provide the funding you need, we have partners who can. It’s going to take a village to close the funding gap, but we can see that there are platforms and banks willing to bring funding to SMEs and enable their growth,” Harris concluded.
